Content Standard

The learners demonstrate an understanding of:

 The marketing principles, goals, and traditional and contemporary approaches to
marketing

Performance Standard
The learners shall be able to:
 Plot marketing goals and approaches for product or service

Learning Competencies
The Learners will be able to:
 Define and understand marketing
 Describe the traditional approaches to marketing

Learning Outcomes
At the end of this lesson, the learners will be able to:

 Define marketing and outline its components

 Discuss the art of exchange
 Describe the traditional approaches to marketing

Introduction

How would you explain marketing? The first few words that usually pop into a person's head are
'marketing equals sales!' Marketing is NOT just personal selling or even just advertising. Most
people define marketing in a very limited way. Marketing includes activities such as public
relations, sales promotion, advertising, social media, pricing, distribution, and many other
functions. Marketing is a crucial function in all businesses and organizations and is becoming
increasingly crucial to success in our modern global economy. This course, regardless of your
industry background, will teach you core concepts and tools to help you better understand and
excel in marketing.

PRINCIPLE OF MARKETING 1
Strategic relating to the identification of long-term or overall aims and interests and the
means of achieving them.
Hierarchy a system or organization in which people or groups are ranked one above the
other according to status or authority.

Marketing is more than just banner ads, television commercials, and people standing on
roadsides dressed up as the Statue of Liberty during tax time. It’s a complex set of activities and
strategies that influences where we live, what we wear, how we conduct business, and how we
spend our time and money. Let us determine how much you already know about Principles of
Marketing by doing the pre-test

Instructions: For each item below, encircle the letter that corresponds to your answer.
1. Traditional __________ marketing is always easy to process mentally and recall in the
future.
a. Promotion c. Greater Exposure
b. Price d. Hard copy

2. _______________is the overall identification of the product or service.

a. Promotion c. Price
b. Product d. Packaging

3. The ______________ is composed of people with both desire and ability to buy a
product.
a. Market c. Demand
b. Exchange d. Customer

4. Getting the product to a point at which the customer can purchase it.
a. Price c. Packaging
b. Place d. Promotion

5. The monetary amount charged for the product.

a. Price c. Packaging
b. Place d. Promotion

PRINCIPLE OF MARKETING 2
Read the information very well then find out how much you can remember and how much you
learned by doing the exercises.

Marketing Principles and Strategies

What Is Marketing?
Marketing activities are conducted in an environment that changes quickly both in terms of
customer demand and the methods by which consumers obtain information and make purchases.
However, before you learn about these complex variables, you will need a good working
definition of marketing.
Marketing is a set of activities related to creating, communicating, delivering, and exchanging
offerings that have value for others. In business, the function of marketing is to bring value to
customers, whom the business seeks to identify, satisfy, and retain. This course will emphasize
the role of marketing in business, but many of the concepts will apply to non-profit
organizations, advocacy campaigns, and other activities aimed at influencing perceptions and
behavior.

Marketing is the activity of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large.

1. Needs- Human need is something that

a person must have to live and survive.

2. Wants- A human want is something

that a person desires to have.

3. Demands are also human wants that are

supported by buying power.

4. Exchange. Marketing occurs when the

buyer and seller trade something of equal
value. Both the buyer and the seller have
gained something that satisfied their
unmet needs.

5. Market. The market is composed of people with both desire and ability to buy a product
or service.

The Art of the Exchange

In marketing, the act of obtaining a desired object from someone by offering something of value
in return is called the exchange process. The exchange involves:

 The customer (or buyer): a person or organization with a want or need who is willing to
give money or some other personal resource to address this need
 The product: a physical good, a service, experience or idea designed to fill the
customer’s want or need

PRINCIPLE OF MARKETING 3
  The provider (or seller): the company or organization offering a need-satisfying thing,
which may be a product, service, experience or idea
 The transaction: the terms around which both parties agree to trade value-for-value
(most often, money for a product)

Individuals on both sides try to maximize rewards and minimize costs in their transactions, to
gain the most profitable outcomes. Ideally, everyone achieves a satisfactory level of reward.

Marketing creates the goods and services that the company offers at a price to its customers. The
entire bundle consists of a tangible good, an intangible service, and the price is the company’s
offering. When you compare one car to another, for example, you can evaluate each of these
dimensions—the tangible, the intangible, and the price—separately. However, you can’t buy one
manufacturer’s car, another manufacturer’s service, and a third manufacturer’s price when you
make a choice. Together, the three make up a single firm’s offer.

Marketing is also responsible for the entire environment in which this exchange of value takes
place. Marketing identifies customers, their needs, and how much value they place on getting
those needs addressed. Marketing informs the design of the product to ensure it meets customer
needs and provides value proportional to what it costs. Marketing is responsible for
communicating with customers about products, explaining who is offering them and why they
are desirable. Marketing is also responsible for listening to customers and communicating back
to the provider about how well they are satisfying customer needs and opportunities for
improvement. Marketing shapes the location and terms of the transaction, as well as the
experience customers have after the product is delivered.

As you will learn in this course, marketing encompasses a variety of activities focused on
accomplishing these objectives. How companies approach and conduct day-to-day marketing
activities vary widely. For many large, highly visible companies, such as Disney-ABC, Proctor
& Gamble, Sony, and Toyota, marketing represents a major expenditure. Such companies rely on
effective marketing for business success, and this dependence is reflected in their organizational
strategies, budget, and operations. Conversely, for other organizations, particularly those in
highly regulated or less competitive industries such as utilities, social services, medical care, or
businesses providing one-of-a-kind products, marketing may be much less visible. It could even
be as simple as a Web site or an informational brochure.

No one model guarantees marketing success. Effective marketing may be very expensive, or it
may cost next to nothing. What marketing must do in all cases is to help the organization
identify, satisfy, and retain customers. Regardless of size or complexity, a marketing program is
worth the costs only if it facilitates the organization’s ability to reach its goals.

Scope of Marketing
PRINCIPLE OF MARKETING 4
Some of the most important scopes of marketing are as follows: 1. Goods 2. Services 3. Events
4. Experiences 5. Persons 6. Places 7. Properties 8. Organizations 9. Information 10. Idea.
The scope of marketing deals with the question, ‘what is marketed?’ According to Kotler,
marketing people are involved in ten types of entities.

1. Goods:
Physical goods constitute a major part of a country’s
production and marketing efforts. Companies market
billions of food products, and millions of cars,
refrigerators, television, and machines.

2. Services:
As economies advance, a large proportion of their
activities is focused on the production of services.
Services include the work of airlines, hotels, car rental
firms, beauticians, software programmers, management
consultants, and so on. Many market offerings consist
of a mix of goods and services. For example, a
restaurant offers both goods and services.

3. Events:
Marketers promote events. Events can be trade shows,
company anniversaries, entertainment award shows,
local festivals, health camps, and so on. For example,
global sporting events such as the Olympics or
Common Wealth Games are promoted aggressively to
both companies and fans.

4. Experiences:
Marketers create experiences by offering a mix of both
goods and services. A product is promoted not only by
communicating features but also by giving unique and
interesting experiences to customers. For example,
Maruti Sx4 comes with Bluetooth technology to ensure
connectivity while driving, similarly, residential
townships offer landscaped gardens and gaming zones.

5. Persons:
Due to a rise in testimonial advertising, celebrity
marketing has become a business. All popular
personalities such as film stars, TV artists, and
sportspersons have agents and personal managers. They
also tie up with PR agencies for better marketing of
oneself.

6. Places:

PRINCIPLE OF MARKETING 5
Cities, states, regions, and countries compete to attract
tourists. Today, states and countries are also marketing
places to factories, companies, new residents, real
estate agents, banks, and business associations. Place
marketers are largely real estate agents and builders.
They are using mega-events and exhibitions to market
places. The tourism ministry is also aggressively
promoting tourist spots locally and globally.

7. Properties:
Properties can be categorized as real properties or
finance. Real property is the ownership of real estates,
whereas financial property relates to stocks and bonds.
Properties are bought and sold through marketing.
Marketing enhances the need for ownership and creates
possession utility. With improving income levels in the
economy, people are seeking better ways of saving
money. Financial and real property marketing needs to
build trust and confidence at higher levels.

8. Organizations:
Organizations actively work to build an image in the
minds of their target public. The PR department plays an
active role in marketing an organization’s image.
Marketers of the services need to build the corporate
image, as the exchange of services does not result in the
ownership of anything. The organization’s goodwill
promotes trust and reliability. The organization’s image
also helps the companies in the smooth introduction of
new products.

9. Information:
Information can be produced and marketed as a product.
Educational institutions, encyclopedias, non-fiction
books, specialized magazines, and newspapers market
information. The production, packaging, and
distribution of information is a major industry. Media
revolution and increased literacy levels have widened
the scope of information marketing.

10. Idea:
Every market offering includes a basic idea. Products and
services are used as platforms for delivering some idea or
benefit. Social marketers widely promote their ideas.
Maruti Udyog Limited promoted safe driving habits,
need to wear seat belts, need to prohibit children from
sitting near the driver’s seat, and so on.

Traditional Approaches to Marketing

PRINCIPLE OF MARKETING 6
 The 2012 Super Bowl broke
viewing records with an average of 111.3
million viewers—the largest audience in
United States television history. But that's
not the only surprising statistic about the
biggest football game ever played.

According to a recent Nielsen survey,

more people watch the Super Bowl for the
advertising than for the game itself. Only
49 percent of viewers are primarily
interested in the sports action, while 51
percent say they enjoy the commercials
more.
TV spots are just one example of traditional marketing, a category that includes several
time-tested marketing techniques. Some traditional marketing strategies are nearly as old as
civilization itself—and they're still effective today.
Traditional marketing is a rather broad category that incorporates many forms of
advertising and marketing. It's the most recognizable type of marketing, encompassing the
advertisements that we see and hear every day. Most traditional marketing strategies fall under
one of four categories: print, broadcast, direct mail,
and telephone. 

Print Marketing is the oldest form of traditional

marketing. Loosely defined as advertising in paper
form, this strategy has been in use since ancient times
when Egyptians created sales messages and wall
posters on papyrus. Today, print marketing usually
refers to advertising space in newspapers, magazines,
newsletters, and other printed materials intended for
distribution.
 Print: Includes advertisements in newspapers, newsletters, magazines,
brochures, and other printed material for distribution
 Broadcast: Includes radio and television commercials, as well as specialized
forms like on-screen movie theater advertising
 Direct mail: Includes fliers, postcards, brochures, letters, catalogs, and other
material that is printed and mailed directly to consumers
 Telemarketing: Includes requested calling and cold calling of consumers over
the phone
Broadcast Marketing includes television and radio advertisements. Radio broadcasts have been
around since the 1900s, and the first commercial broadcast—a radio program supported by on-air
advertisements—aired on November 2, 1920. Television, the next step in entertainment
technology, was quicker to adopt advertising, with less than ten years between its inception and
the first television commercial in 1941.
Direct Mail Marketing uses printed material like postcards, brochures, letters, catalogs, and
fliers sent through postal mail to attract consumers. One of the earliest and most well-known
examples of direct mail is the Sears Catalog, which was first mailed to consumers in 1888.

PRINCIPLE OF MARKETING 7
Finally, Telephone Marketing, or telemarketing, is the practice of delivering sales messages
over the phone to convince consumers to buy a product or service. This form of marketing has
become somewhat controversial in the modern age, with many telemarketers using aggressive
sales tactics. The U.S. federal government has passed strict laws governing the use of
telemarketing to combat some of these techniques.
The Marketing Mix
Another marketing theory that's considered to be traditional
is the marketing mix. Made up of the 7 Ps. These include
product, place, promotion, price, people, packaging, and
positioning. All these components, when combined, create a
solid marketing proposal. However, this theory as well as
Ansoff's can be drastically improved with the use of
contemporary marketing strategies.
The traditional way of viewing the components of marketing
is via the four Ps:
1. Product. Goods and services (creating offerings).
1. Promotion. Communication.
2. Place. Getting the product to a point at which the customer can purchase it (delivering).
3. Price. The monetary amount charged for the product (exchanging).
4. People. play a vital role in servicing customers even though the entrepreneur sells only
physical goods.
5. Packaging. overall identification of the product or service
6. Positioning. is a marketing concept that outlines what a business should do to market its
product or service to its customers.

Traditional Marketing seeks to pull customers to a product, whatever the cost. It is, for this
reason, considered to be fairly outdated as it does not consider the customer they are selling to,
more the market that the company operates within. There are however channels that have
developed from traditional marketing, including digital, that aim for the same goal, however, use
more subtle and approachable mediums to capture their target audience. This may include Pay-
Per-Click campaigns, social media posts, search engine optimization, and email marketing.

Advantages of Traditional Marketing

The advantages of traditional marketing over digital marketing are discussed below:
 Reach local audience: The use of traditional marketing can make your task easy to reach
the local audience. Radio is the best option and the quickest way to advertise your
business and put across your message.

 Reuse and recycling possible: Online marketing will not require any physical material
like posters or pamphlets, but the sole advantage of having hard copies of the advertised
material is an added benefit. The fliers, posters, pamphlets, etc. can be reused and re-read
anytime and anywhere wherever you are located and for this, no internet connection is
required. These promotional media can also be kept for future use and recycled.

 Familiar marketing mode: Traditional marketing is a familiar mode of advertisement

for older people and businessmen, as they don’t need any explanation about the
promotional material. They will accept the flier or pamphlet distributed and will read it
whenever they get the time and in no time, the old people would understand that it is an

PRINCIPLE OF MARKETING 8
 advertisement for any brand or a product. Digital marketing is not a cup of tea for older
customers.

 Hard copy easily processed: Traditional hard copy marketing is always easy to process
mentally and recall in the future.

 Greater exposure: Traditional marketing always has a high success rate. This method of
marketing is a tried and tested method, and thus every businessman believes that the
traditional method will prove and provide them success. Online marketing might reach
most of the population, but there is no guarantee of reaching it to all the targeted
audience.

 New audiences: Traditional marketing will allow you to reach a large population and
across many demographics. You can use billboards, television, and radio for
advertisement. These will also spread your message across the various geographical area
and also reach your targeted audience, and it might be possible that new audiences might
get connected to your brand and business.

Disadvantages of Traditional Marketing

Although traditional marketing has been getting success in the past, there are some
disadvantages of traditional marketing too due to the increasing use of the internet in recent
years. The beginning of the enormous use of the internet, use of smartphones, iPods, tablets, and
social networking sites, small businessmen are also able to advertise their products using
websites and web pages through banners, social sites such as Facebook, WhatsApp, Twitter,
podcasts. These cost less compared to traditional marketing. Some of the disadvantages of
traditional marketing are discussed below:
 Static text: In traditional marketing, the static text is used for advertisement. For
example, if you place an ad for your product in a newspaper and you run out of stock,
then you cannot edit your ad, and there will be many unhappy customers, and in this
method, you cannot interact with the customer. But in digital marketing, you can
immediately update your page or site about the stock and let your customers know about
the situation.

 Lack of time to update the message: In traditional marketing, you will not get time to
respond to the changes you wish to make in the advertisement as compared to the new
modern online marketing. In the traditional advertisement, you need to prepare your ad
well in advance even though if you want to publish your ad in the daily newspaper. While
by using the internet, small businessmen can easily change their ad in a few minutes.

 Expensive compared to online marketing: For putting ads on newspapers, or

distributing any flyer or pamphlet, you need to pay for it every time you plan for running
a campaign. But in online marketing, for any changes to the website, you don’t require
any additional costs. This can be done easily by the team who are working for sales of
your product. Traditional marketing companies will charge you for each delivery of fliers
and mailers, whereas in online marketing your ad is open to the entire World Wide Web.

 Customized Marketing not possible: In traditional marketing, the specific customer

cannot be targeted; the only specific market can be targeted. For example, in traditional
marketing, an ad is created for young ladies of a new style of purse or handbag. But in

PRINCIPLE OF MARKETING 9
 online marketing, you can look at what a viewer is looking for and thus suggest products
of her choice.

 Provide less information: In traditional marketing, it is difficult to present complex

pricing options and offers for the product. The print media does not have enough space to
display all the different variations of the price and other offers, which might appeal to the
buyers. In the case of online marketing, you can offer your customer various options and
appeal to them to buy your product.

 Conversion of traditional media to online marketing: In recent times, many traditional

marketing methods such as newspapers, magazines are now going online so that people
can read the news wherever they are as nowadays the internet is also available to most of
the population.

 Ignorance of traditional methods: Most people tend to ignore or skip the advertisement

more easily, such as they might not read the ad on the billboard or banner, change the
channel of the television when the advertisement or commercial is shown, etc.

 Forced on the consumer: Traditional marketing is mostly forced on the customer, as it

is a part of their daily life. This type of marketing has a low response rate.

Traditional marketing can be used with online marketing to develop your business. An
integrated approach of marketing by using both the strategies will help you to spread the
message about your product or brand. The impact of consumer-to-consumer communications is
important in the marketplace, which is known as word-of-mouth strategy. Word-of-mouth
communication is interesting as it combines the consumer’s outlook and lower costs with faster
delivery. This can be done through technology only such as social networking sites, discussion
forums. In traditional marketing, the salesperson who tries to sell products door-to-door can also
be a part of word-of-mouth communication. Hence, it is up to you as businessmen in which
marketing strategy will suit your product or brand.

Exercises
Fill in the blanks with the correct answer:
1. ________________include the work of airlines, hotels, car rental firms, beauticians,
software programmers, management consultants, and so on.
2. ________________is a marketing concept that outlines what a business should do to
market its product or service to its customers.
3. ________________marketing can be used with online marketing to develop your
business.
4. __________________________is a type of marketing that has a low response rate.
5. In traditional marketing, ________________________is used for advertisement.
6. ______________________is a traditional marketing that will allow you to reach a
large population and across many demographics.
7.______________________is the monetary amount charged for the product.

PRINCIPLE OF MARKETING 10
 8.______________________Includes requested calling and cold calling of consumers
over
the phone.
9._______________________is a set of activities related to creating, communicating,
delivering, and exchanging offerings that have value for others.
10.____________ human need is something that a person must have to live and survive.

Assume you are about to graduate. How would you apply marketing principles to your job
search? You will be graded based on the Rubric scoring given below.

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
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______________________________________________________________________________
______________________________________________________________________________
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Rubric Scoring
Categories Advance Proficient Emerging
(5) (3) (1)

Content Idea stands out and Idea is somewhat clear Idea is not clear and no
clearly supported by but there is a need for supporting information.
detailed information. more supporting
information.

Sentence Structure Sentences are all Sentences somewhat Sentences are not
grammatically structured. grammatically structured. grammatically structured.

Organization Ideas are well-organized Ideas are somehow Ideas are not organized
and easy to follow. organized and easy to and difficult to follow.
follow.

Total

PRINCIPLE OF MARKETING 11
 Assignment
The new connected millennium has brought about changes for the marketing function.
Using connecting technologies (computers, information, communication, and transportation),
marketers are seeking to connect in three ways. List and describe these three connections. You
will be graded based on the Rubric scoring given below.
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________

Scoring Rubric
Categories Advance Proficient Emerging
(5) (3) (1)

Content Idea stands out and Idea is somewhat clear Idea is not clear and no
clearly supported by but there is a need for supporting information.
detailed information. more supporting
information.

Sentence Structure Sentences are all Sentences somewhat Sentences are not
grammatically structured. grammatically structured. grammatically structured.

Organization Ideas are well-organized Ideas are somehow Ideas are not organized
and easy to follow. organized and easy to and difficult to follow.
follow.

Reference:

PRINCIPLE OF MARKETING 12
Deere, J. (2009) Principle of Marketing Open Book Library Retrieved July 29, 2020 from
DefinitionofMarketing.aspx?sq=definition+of+marketing
https://www.deere.com/en_US/corporate/our_company/about_us/ strategy/strategy.page

PRINCIPLE OF MARKETING 13